UPDATED: What you need to know about Spain’s new car subsidies scheme

UPDATED: What you need to know about Spain’s new car subsidies scheme
Photos: AFP
A scheme to boost sales of low-emission vehicles comes into force this week. Here's what you need to know about Plan Renove 2020.

Part of a €3.75 billion plan unveiled by Prime Minister Pedro Sánchez  in June, Plan Renove 2020 is aimed at stimulating the automotive industry and boost an economy stiffled by the coronavirus crisis.

The measures include large incentives to trade in older vehicles for less polluting motors and come into force on October 20th after being published in the Office State Gazette (BOE).

Buyers can receive between €400 and €4,000 for trading in older vehicles with further subsidies also offered by manufacturers and dealerships.

Here’s what you need to know:

The size of the subsidy is dependent not only on the car you scrap but also the car you buy.

Thus more money is offered for older cars and the lower the emission on the new purchase, the higher the incentive to buy it.

So, zero emission electric cars come with a €4,000 subsidy from the government (and €1,000 from the manufacturer) while those with higher emissions and a ‘C’ classification from the DGT warrant just €400.

And Hybrid cars that have an ECO label are eligible for a €600 subsidy.

To be eligible for the new car, the price tag must not exceed €35,000 rising to €45,000 for Zero emission cars or vehicles that are specially adapted for people with reduced mobility .

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Extra €500

A further subsidy of €500 is offered if the scrapped car is over 20 years old, if the purchaser has a household income of less than €1,500 or is registered with reduced mobility.

Subsidies matched by sellers

Manufacturers and delearships are also required to offered subsidies on top of the government discounts, in some cases matching the figure offered under the state scheme. 

Who is eligible?   

To be eligible for the subsidies you must trade in a car that is at least ten years old, has a valid ITV and is registered in your name. Although Plan Renove only came into play on October 20th, 2020 those who have bought a new car to replace an old one since June 15th can apply for the rebate.  

Is there a time limit?

The offer runs until December 31st or until the funds run out. 

Are subsidies only offered on new cars?

The idea is to facilitate the sale of new cars, but it is also offered on all cars registered with a dealership from January 1,2020 so there may well be second-hand cars available on the forecourt.

Can you get a subsidy for a car even if it’s not electric or hybrid?

The answer is yes, all cars bought from the manufacturer or dealership as long as the new vehicle is among the 45 percent more fuel-efficient ones on the market. Subsidies will not apply to vehicles emitting more than 120g/km of carbon dioxide.

The DGT (Dirección General de Tráfico – General Direction of Traffic) introduced environmental labelling for cars in 2016 which classified vehicles depending on their environmental impact.

This was designed to make it easier for authorities to restrict the worst polluting traffic during environmental alerts.

Depending on its pollution level, a vehicle can be labeled, from more to less environmentally friendly, as 0, Eco, C, B. Those cars not eligible for a sticker are classified as A.

The subsidies only apply to those cars that qualify for a label 0, Eco, or C.

The average age of vehicles on Spain’s roads is around 13 years old and the idea behind updating the national fleet is to rid the roads of older gasoline and diesel models which are generally more polluting than the newer versions on the market now.

How do I apply?

All details of the subsidy scheme are availbale through the Minsitry of Transport dedicated page HERE with an online application process. But the dealership where you buy the new car should be happy and able to talk you through it.

Are you considering trading in your vehicle under the Plan Renove 2020? Let us know about your experience. Get in touch HERE. 

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